Topic: What you need to know about trading - page 5. (Read 936 times)

In trading, of course we have to be able to understand trading well, when we experience failure in the trading we do then we have to use that failure as a lesson for the future so we don't make the same mistakes again and we have to keep learning about trading well so we can Avoid mistakes in making decisions in trading.
You are right, it is necessary for everyone who trades to be able to control their emotions in the trading they do, because without being able to control their emotions, of course all we do is greed and mistakes in deciding on the trades we make.

In trading we should accept both losses and wins because some people only wish to have wins so when they loss their money then they leave trading because they are not mentally prepared for both situations. In trading no one can be 100% and if someone think that all the time he will make money in trading then his concept is not true about trading and it means that he cannot understand trading easily.

Try to minimise those mistakes which you already made because if you cannot identify your mistake then this recapitulation can be a cause of your lower knowledge and lifetime loss. Minimum amount of money should be use at initial stage because a person is not emotionally stable at start so it will take time to know  the essential things about trading after which you can increase your budget.

Those people who think trading is just easy and creates quick profits, well they are learning trading the wrong way. Obviously, they won't be good traders in the market as they are not exposed in the realities and toughness of trading. Otherwise, they will end up trading like gambling, which means they trade and lose most often, since they are not knowledgeable and even skillful about trading and they don't even know how to make it work and be profitable.

Trading has its positive factors, as well as negative factors. But if you are not willing to combat the risks and stay impatient on waiting for the positive outcome in trading, then you're not actually destined to be a good and profitable trader in the process.

Losses in trading may seem normal, but if I repeat the same thing I think it is not normal. So to avoid losses we need to understand the market situation and learn from experience regarding market analysis so that the same mistakes do not happen again.

For me, every trader before trading, the main thing that must be considered is to continue learning, and need to control emotions when the market situation is not good so that we get caught in market panic which is usually only temporary apart from that. . Because the success achieved through shortcuts will only be felt in a short time. that's the point!! and enjoy the process.

Brother, I agree with you in the last lines because that is very true but In your first line I have some points that will not match with my thoughts yes every person has their perspective but the thing you said is incorrect. let me tell you how we know trading is risky and the market is very volatile we can not predict what will happen next so in this situation if a beginner comes to this field and we can only tell him about the positive side of crypto, he may be misguidance because he may be gain some lost due to positive points we taught him and in through that context, he comes to the market over confidently and gains loss. So getting loss, it is good to tell him about the positive side as well as the negative side so that he will take his every step very carefully and the chances of loss will be minimal.

That's the reality. And regarding trading, this is not an easy thing to do with high hopes that it can make us successful more quickly. Trading is quite a risky thing. You could say trading is possible for everyone, but not everyone is able to do it. For this reason, when we decide to enter the world of crypto trading, we must first prepare several things very carefully and be truly ready.

Readiness in trading is not only about the readiness of our money but also mental and emotional readiness, insight and knowledge readiness, and our readiness to make various decisions correctly and wisely. This is not easy for sure, but it is not impossible. We have seen many people succeed because of trading, but on the other hand we have also seen many people become poor and very devastated because of trading. So, what kind of example we will choose, this will definitely be a different process from what we think.

That is the reality in trading but there is nothing wrong with thinking positively despite the struggling situation of the market and losses as we can't change the nature of trading. Losses seem normal and I was certain that every trader knew it before they started. That is why every trader must know how to control their emotions, every trader must know how to accept reality and think what they can do to avoid big losses. Perhaps, it was a given scenario already and the only thing we can do is to deal with it in the right way.

This is the reason why we don't need to jump into any conclusion or just decide to trade in wish for bigger profits, if you do that, you will only fail in the middle of your trades. Having your own due diligence to research is a must, not only on the fundamentals and technicalities in trading but also on the experiences made by long time traders. Learning from their experiences will help us motivate ourselves to be great traders as well. And by doing so, we become aware that trading is hard, and quitting is never an option in trading.

There might be inevitable losses in trading but if we can do things to prevent from losing, then it will be a lot better. Trading losses are never bad because somehow you learned from them, but consistent losses and frequent mistakes in trading are never good and healthy at all. You need to find solutions to it.

Traders and investors who think only of the positive side of bitcoin or any other investment entirely are new to the market, because if a trader or investor has been there for a long time, they weren’t supposed to worry about how the market turns out, and before entering the market, they were told that the crypto market is volatile.

However, for the investors or traders panicking about the market, they should find themselves to blame because in any risk you want to take, whether trading or investment, invest what you can afford to lose, so if they do invest the amount they can afford to lose, they won’t panic; they will endure any movement of the market and leave the funds there. till it reaches there target.

Trading is not just a battle of skills but emotions as well. So if you trade and you lose after, that does not mean that you should lose your faith and decide to quit. You will never be a successful trader with that kind of mindset, but instead learn to stay strong and positive, trading is not just all about losses but profits as well but we need to work harder for it to make it happen. We need to build stable emotions as well so that whenever we experience the hard days in trading, we will chose to move on and trade harder.

Success in trading is not achieved instantly. Sometimes, you need to dwell with your losses first because the lessons you will learn from it will serve as your back up when you face bigger challenges with your future trades.

Life could sometimes be unfair. Even with trading and investing, we don't get to make consistent profits but most of us only lose our capital especially if we trade or invest without prior knowledge and experience on the market. But I think that's how trading works in reality. We lose so we can learn its lessons and becomes more motivated to develop useful skills and strategies that will improve our performance in trading.

However, if you see those losses in trading as a sign to quit and move forward, then you are wrong in there. Everyone started from a scratch and you will only be successful in trading if you trade harder and continue to enhance what you need to improve and develop.

that's why 90% of the traders fail. trading is not easy as it seems from the outside world and what influencer teach us like buy at support and sell at resistance. if it was that easy then they should been became a millionaire not some teacher who teaches to draw lines on charts.
also 70% work in trading is controlling emotions when losing or winning. losses and wins are part of this game people take more risk after a small loss and eventually make that small loss a lot bigger.

Indeed, those people especially those who started from nothing obviously experienced a lot of challenges in the trading industry such as losing money, affecting their mental health and physical health, etc. Some people could have options to decide is it either to continue as they learn from their mistake or give up as you lose money. Starting in trading could be a win-win situation cause if you lose, you will learn as part of your development and if you profit, for sure you find your own technique and skills. I would like to add that not all successful traders literally experience some kind of sacrifice as they are already born rich, like trading is just one way for them to invest money. Surely they would experience some losses but it would be a different story to some people who literally started from nothing.

 Do your own research, before making any trade, it's essential to conduct thorough research on the cryptocurrency, its underlying technology, and the overall market conditions. This will help to identify potential opportunities and risks. Develop a trading strategy, having a well-defined trading strategy can help to minimize losses by providing a clear set of rules for entering and exiting trades. A trader should also define their risk management strategy and stick to it. Being emotional. The best trader is the trader without any emotions, that is not phased by a 200% increase or a 70% dip and just takes profits or rebuys more.
  Understand diversity. You need to have a portfolio mentality of building many smaller investments into a portfolio so that the failures in one investment are made up by successes in another. You can not predict the future or time the market. You might be able to see trends, but the number of ways that the future can shift around are varied and numerous. So when things get weird, and they always get weird, then diversity is the thing that saves you.

It is fact that trading is a difficult task and it is not easy to earn through trading. It requires study, courage, patience and experience. A person Who is habitual ,living in dreams will not be successful in this business. But it needs a bold dicision maker and trading mind set. A person who has good experience working in stock market is also successful here because he is aware about ups and down of market ,how to study graph, history of the  company ,its credibility and its index etc. To make right decision at right time is very important in all business so same is there is crypto currency.

Wise traders and investors will always know when they can trade and buy so they will not do so when the market is volatile. They better wait until things calm down before they analyze further to find more clues.
They will not act in a hurry, especially to follow a rising market, if they do not have any preparation.
Experiencing losses is something that all traders and investors experience but they know how to avoid big losses. They will always learn more about trading analysis than other people.
If they don't have any analysis, they won't force themselves to enter the market because it could pose a risk for them.

Indeed, the main thing needed is a strong mentality in learning to trade, so that every failure must be evaluated so that the future will be better, therefore experience is very important in trading, many of us get discouraged in the middle of the road, so we fail. The market moves erratically and has a certain character in each condition, so we need to understand it, therefore a process is needed in learning trading

Trading is not for everyone. Believing that a person just needs to persevere and push through the losses may lead to even more losses. If a person realizes that trading is too risky for them and that they aren't doing great, it's okay to quit and cut losses, to focus on something else. Patience is important, sure, and realizing that there will be losses is important as well, but I don't believe that always staying put and ignoring the losses is the right approach. Sometimes it might be too late to win the money over, and sometimes waiting longer can result in even higher losses.

Those people never knew that those successful traders had paid their dues before reaching the top ladder they had made a lot of sacrifices and failed on several occasions, faces many challenges of complexity of the market consequently incurred losses in trades yet they persevere and continue to learn, gathered and gained more experience in trading thereafter their efforts yielded positive results, unfortunately many new traders who wanted to follow those paths never wanted to learn and sacrifice their time and efforts but wanted to start earning quick profit that is why 95% failed.

And this is not a bad mindset, there is nowhere you would hear that resilience is a bad characteristic either. The plain truth is that trading is sweet but you must experience so many journeys before it would really be sweet for you, and by being sweet, I mean it's easy and will consistently be earning for the trader. Yet, a thorough and foolproof trading experience is needed to get to that level, trading is not what you just dabble upon, you have to think like a trader and also act like one in the ability of not giving up but rather continue to find the so-called "secret" behind it. Mind you, there is no secret in trading, everything is well-known and depends on how you've learned and how creatively you use what you learned, but nevertheless, called it secret in a figurative way so as to know the beauty of trading when you eventually reach there. That's how people would believe also that you own the secret, but in practice, it's about training and they might even know more than what you know, only that you use it better than them. So is that a secret? I say No, it's an effort and wisdom.

As an experienced trader, for the journey of learning and training to be short, I strongly advise that traders should focus on;
1. Trading strategy,
2. Trading Management,
3. Trading psychology, and
4. Plan (coordination of what you know).

Knowing all these, I would like the person to ensure at least two trading strategies, of which one must be a trend trading strategy, while the other is a support and resistance strategy. I recommend Trendline for the latter. If done, now focus so well on 2&3 without letting style-drift affect you the way it wastes the time of others as 2&3 holds the true success of traders. But that is after they are sure of 1.